Open AccessCapital intensity, unproductive activities and the Great Recession in the US economy
Author(s) -
Lefteris Tsoulfidis,
Dimitris Paitaridis
Publication year - 2018
Publication title -
cambridge journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.261
H-Index - 83
eISSN - 1464-3545
pISSN - 0309-166X
DOI - 10.1093/cje/bey051
Subject(s) - economics , rate of profit , falling (accident) , capital (architecture) , capital intensity , investment (military) , great recession , recession , capital deepening , net capital rule , profit rate , capital accumulation , monetary economics , value (mathematics) , profit (economics) , fixed investment , keynesian economics , labour economics , capital flows , financial capital , capital formation , microeconomics , geography , archaeology , medicine , environmental health , machine learning , politics , political science , computer science , law
The purpose of this article is to show that the ‘great recession’ of 2007 in the USA is of the classical type with basic features the rising value composition of capital which more than fully offset the rising rate of surplus value giving rise to a falling rate of profit. The tendential fall of the latter, from a point onwards, led to a stagnant mass of real net profits, thereby decreased net investment and eventually impacted on employment. The evolution of capital intensity and the consequences of unproductive activities remain key issues in the discussions of capital accumulation and its periodic ruptures
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